|
|
|
Monday Morning Mortgages>
Monday Morning Mortgages
July 13, 2009
Monday Morning Mortgages is a brief week-opening report on mortgages in our area. This is a tool to assist my realty partners on loan trends, rates, program changes, and problem solutions.
(I hate spam. If you feel MMM is spam, please reply to this message with REMOVE in the subject line.)
Sonoma County Home Sales Rise
According to MDS DataQuick (www.DQNews.com) home sales have increased by 15.3% in May ’09 from previous year, with median price having fallen 27.2%.
Sales Volume Median Price
May 2008 May 2009 May 2008 May 2009
457 527 $415,000 $302,000
ARMS
There is a re-emergence of ARMS as mortgage options as the spread between ARMS and fixed rate loans grows. See below: 7 year conforming ARM at 4.5%. How many people stay in their homes for more than 7 years?
Rates
Speaking of 7 years from now, analysts expect rates to be significantly higher (closer to 10%) then due to the economic pressures being created today by incredibly large debt sales by the government. While rates are low now, be aware that the bus is warming up it’s engine to leave the low-rate station where it has been parked in for the past decade. Let this be a warning; anyone thinking of refinancing, now is the time to do it. Rates are looking good, opening better this week than last. See below for today’s rates.
HELOCS
Clients still ask me about putting a line of credit on their home for extra cash, or using a second to avoid mortgage insurance in a home purchase. Those products are history unless the homeowner has lots of equity in their home. US Bank popular piggy back purchase program is now limited to 75% CLTV as is Wells Fargo’s.
A tip for existing home owners; Bank of the West has a sweet HELOC at a good rate for high FICO borrowers that goes to 85% CLTV, is easy to get and has no fees. Very nice. Call Tina Dalk at BoftheW @ (707) 586-8000.
Loan Closing Turn times for Escrow Timing
Conventional Mortgage 30 days
FHA 30 days
Today's Rates
WITH ONE LOAN POINT
Conforming (<= $417,000)
30 Year 4.875%
5/1 ARM IO 4.25%
7/1 ARM 4.5%
Jumbo Agency ($417,001 - $662,500 in Sonoma County)
30 Year 5.25 %
FHA Conforming (<= $417,000)
5.25%
FHA Jumbo (to $520,950)
5. 375%
Super Jumbo (<= $3 million)
30 year fixed 6.75%
3/1 ARM 4.125%
|
|
